DHFL

Owning a home has now become easy with numerous reputed financial institutions offering convenient home loans at attractive interest rates. You may now easily borrow funds from one such institute to invest in a new property, construct a home, or furnish the existing one. Since offering home loans has become a competitive industry, it is essential that one compares the interest rate and other such features of loans offered by different banks and make the optimal choice after proper research.

DHFL Home Loans

DHFL (Dewan Housing Finance Limited) has grown to be a revered company in the finance industry that is known for providing quality services to its extensive network of customers. Headquartered in Mumbai, the company has 349 branches across the country and also has tie-ups with prominent banks such as DHFLBank and the United Bank of India. The company caters to Indian residents as well as non-resident Indians (NRIs). By offering specially designed home loan packages to the middle and lower income section of the society, this financial institute endeavors to help people in the rural as well as semi-urban parts of the country realize their dream of owning a house.

DHFL Home Loan Eligibility Criteria for Salaried and Self-Employed Borrowers

All the documents must be self-attested. Lender may ask you for some more documents based on your overall profile.

DHFL Home Loans Interest Rates

DHFL is known for offering highly competitive rate of interest on home loans. For tenure of 1-30 years, the effective rate of interest is offered at 8.35% p.a. onwards. Here are the different rates of interest charged on different loan amount for salaried as well as self-employed individuals.

Salaried borrowers: Individuals applying for a loan amount of up to 25 lakhs annually as well as above 24 lakhs to 75 lakhs fall under the bracket of 8.85% interest rate. Those applying for above 75 lakhs to 100 lakhs and about 100 lakhs to 150 lakhs get charged 8.95% interest. The ones applying for loans above 150 lakhs to 300 lakhs get 9.15% interest, and loans above 300 lakhs get charged 9.50% interest rate.

Self-Employed Business Owners: In the case of self-employed individuals, those applying for loan amount of up to 25 lakhs, and above 25 lakhs to 75 lakhs get to pay interest rate of 8.95%. Those applying for above 75 lakhs to 100 lakhs, and above 100 lakhs to 150 lakhs fall in the category of 9.15% interest rate. Those looking for loans above 150 lakhs to 300 lakhs need to pay 9.25% interest, and for loans above 300 lakhs get charged 9.75%.

Types of Home Loans DHFL Offers

DHFL offers a wide range of home loans to suit the requirements of people with varied needs. The different categories of home loans offered are transparent, flexible, and convenient to cater to a large section of the society. Here are the different categories of loans offered by DHFL:

Regular Home Loan

DHFL offers a carefully packaged home loan with attractive features to enable people to invest in a property of their dreams.

Home Improvement Loan

Rather than investing in a new house, some people prefer redesigning their current house to keep it fresh and up to time. With prices of restoration services skyrocketing, renovating your house can burn a big hole in your pocket. DHFL enables you to facelift your house by offering a well-designed Home Improvement Loan.

Home Construction Loan

Do you own a plot of land but need some financial help to build a house in the area? Then the home construction loan offered by DHFL is the optimal solution for you.

Home Extension Loan

People generally realize the need for an additional space in their houses with time as the family begins to grow larger. Multiple members entails having a larger living space and rooms for them which may require the homeowner to occasionally carry out an extension project. Adding a room, balcony, garage, and so on can pose to be expensive which can be solved by availing the flexible home extension loan offered by DHFL.

Home Loans for Self Employed

With a major portion of the workforce of this country being self-employed and running small businesses, it can be a long lost dream for them to own their own house. DHFL helps such people realize their dream by offering them exclusive home loan packages according to their income.

Plot Loan/ Land Loan

Other than buying a house, if you wish to own a plot of land and build a home on it later but do not have the resources to invest on the land yet, then you can avail the plot loan offered by DHFL.

Home Loan Transfer Balance

If you already have a loan from another bank but are finding it difficult to pay the high interest rate, then you may easily transfer your loan to DHFL. The company offers the provision of transferring your loan from any bank to theirs at a much lower interest rate which can pose as a highly cost-effective move.

Plot and Construction Composite Loan

DHFL also offers to provide funds for the overall expenses of building a house right from owning the plot of land to the construction of the house.

Pradhan Mantri Awas Yojana (PMAY)- CLSS

The government of India had launched an initiative of Pradhan Mantri Awas Yojana, the goal of which was to provide housing for all by 2022. This Credit Linked Subsidy Scheme (CLSS) covered the Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG) 1 & 2 customers. Thus, any individual who falls under this category and dreams of owning a house can apply at DHFL which provides this facility under their home loan scheme.

DHFL Home Loan Features

Tenure: Different categories of home loans have a different yet flexible range of tenure that one can apply for. For a regular home loan, Pradhan Mantri Awas Yojana as well as loans for self-employed, the tenure is 1 to 30 years, for home improvement it is 1 to 10 years, while for home construction, home extension, plot loan, balance transfer, and plot and construction composite loan, it is 1 to 20 years. The tenure does not extend beyond the retirement age of 60 years (for salaried) and 65 years (for self employed individuals), whichever is earlier.

Loan amount: DHFL offers a loan amount from Rs 50,000 up to 25 lakhs, including insurance for EWS and LIG and up to 140 lakhs with insurance for MIG.

Convenient Interest Rate: DHFL offers an interest rate based on its Retail Prime Lending Rate (RPLR). This rate fluctuates with time based on the current money market conditions.

Fees and Charges: The processing fee is charged as per the home loan application. While salaried and self-employed individuals are charged around Rs 5000 to Rs 20,000 and GST, self-employed non professionals are charged 1.5% plus GST as applicable. DHFL also charges a minimal amount of Rs 220 as standard documentation charges.

Tax Redemption: Borrowers who are Indian residents can also avail the tax benefits offered under the home loan scheme of DHFL. The Income Tax Act 1962 states that there is Rs 2,00,000/- exemption for the interest amount paid in the financial year under section 24(b), and up to Rs 1,50,000/- (under section 80 C) for the principal amount repaid in the same year.

Co-Applicant: A borrower may also include a co-applicant for the home loan to enhance the loan amount.

Repayment Options: DHFL makes the loan repayment easy through two modes. You may either use the ECS (Electronic Clearing Service) for the transfer, or pay the amount through Post Dated Cheques (PDCs) drawn on your Savings/Salary account.

Varied Purposes: DHFL offers home loans for not just buying a home but for numerous other housing related purposes as well such as for conducting construction or extension in the current house, buying a plot of land, balance transfer of loan from another bank, and so on.

Benefits of DHFL Home Loans

There are numerous features that separate this housing finance corporation from other banks and financial institutions. While other reputed banks are known for their strict policies and application requirements, DHFL poses as a relief for people looking for some leniency in the process of buying a home loan. Here are the broad benefits of availing a home loan from DHFL:

Easy eligibility: The primary benefit of DHFL is their leniency during the application selection process for home loans. Thus, those individuals who are finding it difficult to get approval for a home loan from another bank can find respite with DHFL.

Relaxed Credit Score Rules: While most reputed banks avoid giving loans to individuals with a poor credit score owing to the fear of not getting a repayment on time, DHFL is quite lenient in this regard. However, DHFL covers this risk through a considerably high interest rate to such borrowers.

Easy Documentation: Another area of leniency offered by DHFL is in accepting the documents of a candidate. In cases such as people from rural or backward areas who may find it difficult to obtain occupancy certificate from the Municipal Corporation, DHFL offers respite and accepts any other documents proving the same.

DHFL Home Loans Eligibility Criteria

There are numerous eligibility criteria that DHFL considers before selecting a candidate for any category of home loan. These facets include the following:

Age Limit: The borrower must be within the age limit of 21-60 years to be able to qualify for a home loan.

Minimum Work Experience Required: To ensure that the borrower has a stable income and can pay back the amount of loan borrowed in time, DHFL required a minimum work experience of 2 years for salaried borrowers and a business stability of 5 years for self-employed individuals.

Loan Amount: A borrower can take a regular home loan of about Rs 15 lakhs to Rs 5 crore, of Rs 1 lakhs to Rs 5 crore for Home Improvement, of maximum amount of Rs 1 crore or 80% of the cost of property whichever is lower for Home Extension, and of Rs 1 lakh or maximum up to Rs 1 crore or 60% of the cost of property or market value whichever is lower for Loans for Self Smployed as well as Plot Loan.

Loan Tenure: The tenure for which a candidate can borrow the regular home loan from DHFL is 1-30 years. On the other hand, the loan tenure for home improvement, home construction, home extension, plot loan, and plot and cnstruction composite loan is 1-20 years. Home loans for self employed and home loan balance transfer is offered for a period of 1-15 years. These tenures should not exceed the retirement age of 60 years for salaried borrowers and 65 years for self employed individuals.

Processing Fees and Charges: For all the loan categories, an additional 1.5% of the loan amount is charged as processing fees for self employed individuals and Rs 5000 to Rs 20,000 for salaried professionals. For a Home Extension Loan, an additional charge of stamp duty on the loan documents is also levied.

Documents Required: There is certain basic documentation required by DHFL for processing a loan request. These documents include the following:

Salaried Candidates: The salaried individuals need to submit their KYC documents which comprise of identity proof and address proof, salary slips of last 2 months (6 months for variable salary) or salary certificate, bank statement of last 3 months, and company profile.

Self Employed Candidates: The self employed borrowers need to submit their KYC documents, income tax return of last two years with audited balance sheet and account statement, business profile on letter head of the company, bank statement of 6 months of all bank accounts, proof of business, Copy of partnership deed, and Article of association, memorandum of association, Form 16 or Tax deduction certificate, Details of contract, and a Copy of advance tax paid or self assessment tax paid challan if any. The self employed professionals are required to submit additional documents of a copy of educational qualifications certificate, professional practice certificate, and salary certificate if applicable.

NRIs: Any NRI applying for a home loan needs to submit their KYC documents, salary certificates, salary slips of last 2 months (6 months for variable pay), proof of income attested by embassy officials, latest income tax returns, evidence of business, copy of passport with valid visa, work permit or labor contract or employment certificate issued by government of India, property related documents from an architect of India, processing fees by cheque or draft, overseas and NRE/NRO bank statement of last 6 months, and a continuous discharge certificate.

DHFL Home loan Eligibility Calculator

DHFL also offers for an EMI Calculator on its official website wherein, just like the eligibility calculator, one can fill in their name, email id, and mobile number and a representative from the company would contact you for answering your queries on your EMIs. Through this, you can get an approximate idea of the payments that are due as well as the entire repayment process. You just need to fill in your loan tenure, interest rate levied on it, and the loan amount to know the details of EMI.

These three factors are vital while applying for a home loan as they help in determining you repayment capacity. A longer tenure of loan repayment entails lower EMI. On the other hand, a higher loan amount would make your monthly EMI high as well. When it comes to the rate of interest, high interest rate means higher EMI which would make the loan expensive for you.

Thus, by using this EMI calculator, you would be able to garner the following benefits:

It would enable you to find and select a loan option that best suits your needs as well as repayment capabilities. If the home loan program that you had already selected turns out to be impractical or expensive for you, you may easily find an affordable option by calculating another amount or interest rate.

After selecting an optimal option, you may then further decide upon your repayment plans which can include a top up plan or even prepayment option; as deems suitable.

By giving an estimation of the EMIs to be paid over the tenure, it also enables one to plan their overall monthly expenses accordingly.

FAQs

Applying for a home loan can become a complex process for some, especially for young applicants. Here are some popular FAQs that can help clear your queries regarding DHFL home loans:

What is an EMI?

An EMI is the Equated Monthly Installment which refers to the amount that a borrower needs to pay to the lending institution on a monthly basis till the loan amount is fully paid. This installment comprises of a portion of the principal amount and the rate of interest levied on it.

Do I need to get a guarantor?

While some banks require the borrower to have a guarantor, DHFL does not have any such requirement.

How long does DHFL take to approve a loan application?

It would take about 3-15 days for your home loan application to be approved by the authorities, provided that the required documentation is provided by the applicant.

What is floating rate of interest?

Floating interest rate is based on the current market lending rate and thus fluctuates with time. DHFL charges this floating rate on its home loans which provides the borrower with the opportunity to pay less in case the market rate goes down.

What are the eligibility criteria for a home loan?

To be eligible for applying for a home loan, DHFL requires the applicant to fulfill the following conditions:

Must be an Indian resident or NRI

Should be above the age of 21 while commencement of the loan and below 65 years upon loan maturity

Should be either salaried or self-employed

Do I need to submit a security for DHFL home loan?

While most banks require the applicants to submit security upon the loan amount in the form of not only mortgage of the property but also additional security such as FD receipts or life insurance policies, DHFL does not ask for any such security. One is asked to submit a security only in exceptional cases.

What is the method adopted by DHFL for calculating EMI?

DHFL follows the Monthly Reducing system for calculating EMI wherein the principal amount on which the interest is paid reduces every month.

The wide variety of home loan options, convenient loan amounts and tenure, as well as highly flexible rate of interest makes DHFL as an optimal institution for availing loans. Moreover, their unique and suitable aspects such as leniency in giving loans coupled with no requirement for a guarantor or security against the loan makes them a highly recommended and suitable housing finance institution for borrowers. One can either visit their nearest DHFL branch or browse through their official website to get more details on the application process and the procedure of contacting them.

News and Articles

DHFL Officially Forecasted Growth of 30% in Home Loans for this Fiscal

30 November 2017:DHFL (Dewan Housing Finance Limited) has officially forecasted growth of 30% in home loans for this present fiscal. DHFL feels that most of this growth in home loans will be majorly spurred by the smaller towns and cities in India. The Central Government has given a strong push to affordable housing through a slew of measures like infrastructure status, input credit for developers and interest subsidies under the PMAY (Pradhan Mantri Awas Yojana). The company remains positive about achieving 30% growth and this is an indicator of the strong demand for affordable housing in India. DHFL posted net profits of 26.1% for the quarter ending in September 2017. Net profits stood at Rs.293.3 crore with AUM (assets under management) witnessing the growth of 25.1%, touching Rs. 94, 089 crore for the quarter.

DHFL has raised Rs 125 crore by allotting NCDs

27 July 2017:Home loan firm Dewan Housing Finance has raised Rs. 125 crore by issuing non-convertible Debentures (NCDs). The company has announced earlier that it is going to issue secured redeemable NCDs amounting to Rs 100 crore. "The Members of the Finance Committee of the Board of Directors have at their meeting held today allotted 1,250 secured, redeemable, non-convertible debentures of face value Rs 10 lakh each ('NCDs'), aggregating to Rs 125 crore," the lender said in a BSE filing. The housing firm last week reported a 29% rise in net profit for the quarter ended June and reported a 27% rise in net profit for the entire 2016-17 compared to the previous financial year.

DHFL reported a rise in profit by 29% in the first quarter.

22 July 2017:Dewan Housing Finance Corporation reported a rise in profit by 29% in the first quarter of the year ended 30th June, 2017 as against Rs.201 crore during the same period last year. The total income from operations also increased to Rs.2407 crore in the June quarter from Rs.1955 Crore in June last year as said in a Bombay Stock Exchange. Home loan sanctioned by the company during the June quarter which also increased by 23% to Rs.10862 crore against Rs.8800 crore in the same period last year. Disbursement also increased to 33% to Rs.8236 Crore. The company has also reported an increase in net profit by 27%. It increased to Rs.927 Crore for the year 2016-17 compared to Rs.729 Crore in the previous financial year. It claimed an income of Rs.8857 Crore for the last financial year compared to Rs.7300 a year ago.

DHFL Expects 30% Disbursement Growth in Andhra Pradesh, Telangana

24th January 2017: Dewan Housing Finance Limited (DHFL) is expecting an increase of 30% in home loan requirements in Andhra Pradesh and Telangana owing to initiatives like ‘Housing for All by 2022’ and Smart City projects. With rapid urbanization, DHFL expects to increase its loan book size by 30%, which currently accounts for Rs. 16,000 crore of the market in Andhra Pradesh and Telangana. The loan size averages at 13.92 lakh for Telangana and Rs 11.85 lakh for Andhra Pradesh.

Customer Reviews

Raju T

Home Loan, DHFL, Hyderabad

The services are awesome, the process is very simple, never thought getting a loan can be so fast. Great platform for taking loan from multiple banks at one place.

k Venkatesh Babu

Home Loan, DHFL, Bengaluru

Best place to get loan information of different banks, and the serivce and knowledge of team is excellent. Thanks to entire Iserve Team.

Ranvirsingh

Home Loan, DHFL, Hyderabad

Iserve Financial helped me to compare the ROI to reduce EMI and to get large loan amount also. Both Iserve and DHFL, the services are prompt. Thank you Very Much

Gangachary

Home Loan, DHFL, Hyderabad

you are providing good information about loans and banks interest rates. thank you for your information and service.

Satvinder Singh

Home Loan, DHFL, Delhi

I am really very thankful to Iserve Financial team for providing a very good service for my Home loan. All teams works very cool and don?t loose their patience even during multiple follow ups.Thanks a lot of all team and management. Best of luck.

Vinit

Home Loan, DHFL, Pune

I applied for this DHFL Home loan and to my surprise I got the loan amount within a week. Iserve financial was very helpful and the Sales people were very nice and polite. Good job by Iserve Financial .

k Venkatesh Babu

Home Loan, DHFL, Bangalore

Best place to get loan information of different banks, and the serivce and knowledge of team is excellent. Thanks to entire Iserve Team.

Ranvirsingh B

Home Loan, DHFL, Hyderabad

Iserve Financial helped me to compare the ROI to reduce EMI and to get large loan amount also. Both Iserve and DHFL, the services are prompt. Thank you Very Much